cam, 292 words, 0 comments, Federalism, Anti-Federalism, National Character, Federal Character, GST, Taxation

Rudd stated:

"What I'm signalling firmly, strongly today is it's time for the buck-passing to end and it's time for the real work, with sleeves rolled up, to begin," Mr Rudd said yesterday. "These are huge challenges for the nation," Mr Rudd said. "The time for buck passing has come and gone. I think the Australian people are tired, just sick and tired of all the excuses which their politicians have served up for so long as to why progress can't be realised in these critical areas of public policy need."

The only reason buck passing is possible is because the national government has delved so deeply into the states' revenue stream and responsibilities. We have a broken federal system which has been smashed through successive anti-federalist Governments and High Courts.

A government is only supposed to raise enough revenue from taxes to support itself and no more. This is not the case in Australia as the national government does 85% of all taxation in the country. Half of the state budgets are dependent on nationally raised taxation revenue such as the GST and Grants.

The quickest way to fix federalism in Australia is dump the GST and Grant system. States would become responsible for meeting their own budgetary needs. This would force them to revisit their agreement allowing the national government to tax income exclusively, curbing the national government's fiscal power by eroding their monopoly on income taxation. (more)

cam, 526 words, 0 comments, GST, Anti-federalism, Overtaxation, Tax, States

I am not a fan of the GST. I consider it an anti-federalist tax. I would accept it if it was funding the federal government, but since it is redistributed to the states, and not one for one, it breaks the principle of a government only raising the revenue it needs to support itself and nothing more. (more)

cam, 664 words, 0 comments, GST, Vertical Tax Imbalance, Western Australia, Tax

Western Australia is claiming that they are being ripped off by the federal government collecting taxes for them and then redistributing it with a loss of four billion to Western Australians. Australia's other big exporting state, New South Wales, has found itself in a similar position. The vertical tax imbalance is the most insidious form of anti-federalism and must be stopped if Australia is to have a federalist political system. (more)

cam, 238 words, 0 comments, Tax, John Watkins, Commonwealth Grants, GST

Not only does Australia have a damaging vertical tax imbalance, apparently there is some crazy formula directing the redistribution of state wealth through Commonwealth Grants. (more)

cam, 1270 words, 5 comments, Anti-Federalism, State Dissolution, GST, Westminster

The Australian Federal Government has broken its constitutional bounds and is actively coveting the States responsibilities. The recent election campaign put the states on notice that the Liberal Government was going to take over education while the Labor health policy took health funding and administration from the States.

The basis for a Federation is that the power resides in the States with the small area of common interest being ceded to a Federal Government. These are normally nothing more than defence, international trade, inter-state trade, border control and immigration. In the 21st Century, the Australian Federal Government has crashed through these limited responsibilities.

The Federal Government has done this through taxing for the states and consequently controlling their funding. Coupled with that has been the meekness of the States and the inherent structural flaw in the Westminster in its inability to combat entropy of power to the centre. (more)